If your Microsoft 365 renewal is approaching, getting a competitive quote is an obvious priority. But before you send the current licence list out for pricing, it's worth checking whether you still need everything on it.
That takes a little more work than looking at the last invoice. You need to bring together what you've bought, who's using it and what the organisation expects to change over the next year. The aim is to come away with a renewal you can explain: why these licences, why these quantities and why these terms.
Here's where to start...
Make a list of your subscriptions, quantities, renewal dates, commitment lengths and billing arrangements. Include separately purchased add-ons. They may not all renew together, particularly if you've added services during the year.
Ask your provider when they need your instructions. That's the date to plan around, with enough time beforehand for technical checks and purchasing approval. Monthly billing doesn't necessarily give you a monthly opportunity to reduce your commitment; check the term as well as the payment frequency. Microsoft explains the distinction here.
Compare the number of licences you're paying for with the number assigned, then investigate the difference. Some spare capacity may be intentional - for example, for confirmed new starters. Other licences may simply have been left in place after people moved on.
For leavers, make sure any required data retention, mailbox or access arrangements have been dealt with before removing licences. Then confirm the change to the purchased quantity with your provider. Unassigning a licence frees it for reassignment; it doesn't, by itself, reduce your bill.
Keep a short explanation for the licences you're retaining without a current user. It makes the next review much easier.
Low application usage is a reason to investigate, not an automatic reason to downgrade someone.
A person who rarely opens a desktop application may still need the security or compliance features associated with their licence. Those requirements won't necessarily be apparent in a report showing app activity. Review what the person does, the data they work with and the controls that apply to them before deciding on a cheaper plan.
This is also where a conversation with the relevant manager helps. A change in role or an upcoming project can explain something the reports can't.
List your add-ons and the reason each was purchased. Check whether that need still exists and whether your current suite now includes a suitable alternative.
Where there’s overlap, look at the work involved in removing it. Replacing an established tool may require configuration changes, testing and user support. You also need to know when its existing contract can end. Until then, you may be paying for both.
For E5 customers considering E7, our [E5 and E7 article](/insights/microsoft-365-e5-or-e7) looks more closely at comparing a bundle with selected add-ons.
A confirmed recruitment plan is different from an ambition to expand. A scheduled deployment is different from an idea someone wants to explore.
Use the firmer requirements to build your renewal proposal, then discuss how to accommodate the less certain ones. Ask your provider what flexibility is available and what it costs. A lower unit price may be less attractive if it requires a longer commitment than you're comfortable making.
You don't need to predict the year perfectly. You do need to recognise which assumptions could leave you paying for more than you need.
Check the full product names, including whether Teams is included, as well as quantities, add-ons, commitment length, billing frequency and VAT treatment. Make any differences in support or other services explicit.
Also ask how long discounts apply and what happens when they end. A first-year offer and a continuing price are different propositions.
If a quote includes a saving, establish what it’s being compared with. Spending less than you would by renewing unchanged isn't necessarily the same as spending less than last year. Both comparisons can be useful, provided everyone understands them.
Before the renewal is processed, record the agreed products, quantities, prices, terms and effective dates. Include anything that still needs to happen, such as ending an overlapping subscription or reviewing licences reserved for recruitment.
Once the changes take effect, check the subscriptions and invoice against that record. This is a small but useful step: it confirms that the decision you approved is the one you're paying for.
If you'd like help working through the details, TIEVA can review your Microsoft 365 licences and provide a competitive quote based on your requirements.
You'll find more guidance and answers to common questions in our Microsoft 365 renewal hub.